Groq And Nvidia In Non Exclusive Ai Inference Technology Licensing

Today, Groq announced that it has entered into a non-exclusive licensing agreement with Nvidia for Groq’s inference technology. The agreement reflects a shared focus on expanding access to high-performance, low cost inference. As part of this agreement, Jonathan Ross, Groq’s Founder, Sunny Madra, Groq’s President, and other members of the Groq team will join Nvidia to help advance and scale the licensed technology. Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer. GroqCloud will continue to operate without interruption. Artificial intelligence technology company Groq has signed a non-exclusive licensing agreement with NVIDIA, allowing the latter to access Groq’s inference technology to expand and advance high-performance AI inference.

Attend the Potomac Officers Club’s 2026 Artificial Intelligence Summit on March 19, which will feature top voices from agencies and industry. Register now to explore cutting-edge use cases and be part of the conversation shaping the future of AI in government. Groq said Wednesday that the agreement also includes company president Sunny Madra and company founder and CEO Jonathan Ross moving over to NVIDIA. Simon Edwards will succeed Ross as chief executive at Groq, which will continue to operate as an independent company. Edwards most recently served as Groq’s chief financial officer. According to Alex Davis, CEO of Dallas-based growth investment firm Disruptive, NVIDIA has agreed to acquire Groq’s assets for approximately $20 billion in cash, CNBC reported Wednesday.

In September, Groq raised $750 million in a financing round led by Disruptive, which has invested more than $500 million in the company since its founding in 2016. Groq has signed a non-exclusive technology licensing agreement with Nvidia that will allow the chipmaker to use Groq’s AI inference technology, while several senior Groq executives move to Nvidia and Groq continues operating independently... NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company's Gr… Written with AI assistance, verified and edited by our team. Questions?

Contact us. Receive our weekly market insights and tech news roundup. You've reached the free limit. Upgrade to premium for unlimited access. AI chip startup Groq [1.] today announced that it has entered into a non-exclusive licensing agreement with Nvidia for Groq’s AI inference technology [2.]. The agreement reflects a shared focus on expanding access to high-performance, low cost inference.

As part of this agreement, Jonathan Ross, Groq’s Founder, Sunny Madra, Groq’s President, and other members of the Groq team will join Nvidia to help advance and scale the licensed technology. Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer. GroqCloud will continue to operate without interruption. It remains to be seen how Groq’s new collaboration with Nvidia will effect its recent partnership with IBM. Note 1. Founded in 2016, Groq specializes in what is known as inference, where artificial intelligence (AI) models that have already been trained respond to requests from users.

While Nvidia dominates the market for training AI models (see Note 2.), it faces much more competition in inference, where traditional rivals such as Advanced Micro Devices have aimed to challenge it as well... Note 2. Training AI models (used by Nvidia GPUs) involves teaching a model to learn patterns from large amounts of data, while AI “inferencing” refers to using that trained model to generate outputs. Both processes demand massive computing power from AI chips. ……………………………………………………………………………………………………………………………………………………………………………………………………. Groq has achieved a significant financial milestone, elevating its post-money valuation to $6.9 billion from $2.8 billion following a successful $750 million funding round in September.

The company distinguishes itself in the competitive AI chip landscape by employing a unique architectural approach that does not rely on external high-bandwidth memory (HBM) chips. This design choice, leveraging on-chip static random-access memory (SRAM), mitigates the supply chain constraints currently impacting the global HBM market. The chip giant is acquiring Groq’s IP and engineering team as it moves to lock down the next phase of AI compute. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Nvidia has announced a $20 billion deal to acquire Groq’s intellectual property.

While it's not the company itself, Nvidia will absorb key members of its engineering team, including its ex-Google engineer founder, Jonathan Ross, and Groq president Sunny Madra, marking the company’s largest AI-related transaction since... Nvidia’s purchase of Groq’s LPU IP focuses not on training — the space Nvidia already dominates — but inference, the computational process that turns AI models into real-time services. Groq’s core product is the LPU, or Language Processing Unit, a chip optimized to run large language models at ultra-low latency. Where GPUs excel at large-batch parallelism, Groq’s statically scheduled architecture and SRAM-based memory design enable consistent performance for single-token inference workloads. That makes it particularly well-suited for applications like chatbot hosting and real-time agents, exactly the type of products that cloud vendors and startups are racing to scale. It's been two days since news broke that Nvidia was spending $20 billion to acquire top talent from Groq in what the chip startup called a "non-exclusive licensing agreement."

Nvidia, the world's most valuable company, hasn't issued a press release or regulatory filing and, according to a spokesperson, is only confirming the contents of Groq's 90-word blog post published after the close of... "They're so big now that they can do a $20 billion deal on Christmas Eve with no press release and nobody bats an eye," said Stacy Rasgon, an analyst at Bernstein, in a Friday... While neither company confirmed the price tag, CNBC learned from Groq lead investor Alex Davis on Wednesday that Nvidia had agreed to buy assets from Groq, a designer of high-performance artificial intelligence accelerator chips,... Davis' firm, Disruptive, has invested more than half a billion dollars in Groq and led the startup's latest financing round in September at a $6.9 billion valuation. Groq founder and CEO Jonathan Ross along with Sunny Madra, the company's president, and other senior leaders "will join Nvidia to help advance and scale the licensed technology," the startup said in the post,... Nvidia has struck a sweeping deal with AI chip startup Groq that—depending on which headline you saw first—was either the chip giant’s biggest acquisition ever, or something much more unusual: a “non-exclusive” technology licensing...

That distinction isn’t just semantics. It’s the whole story. Groq says it has entered into a non-exclusive licensing agreement for its AI inference technology with Nvidia, and that Groq founder Jonathan Ross and Groq President Sunny Madra, along with additional team members, will... Groq+1 The structure has reignited a broader debate in Silicon Valley and Washington: whether Big Tech is increasingly using licensing, equity stakes, and talent transfers to achieve acquisition-like outcomes—without triggering the same regulatory friction as... And in this case, at a reported price tag around $20 billion, the stakes are enormous.

Reuters+1 Groq’s public statement is explicit about three key points:

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